How to appropriate money gracefully from your clients’ accounts to yours
Carolyn, As You Like It Consulting
Mike, On The Same Page Technical Communications
Pros: Because I deal with individual clients on a one-to-one basis, they pay me right on the spot. This avoids any invoicing and waiting that other businesses have to do. However, if I start servicing businesses, which looks likely, then I would do what Mike does.
“Healthy” payments; being able to plan investments for business growth.
Cons: Late payments; contractors usually the “first to go,” sometimes running the risk of getting “shorted”.
Cons: Individual clients don’t have as much money as businesses.
Greatest challenges: Establishing reasonable net payment terms (15, 30, 60, 90 days, or into the Twilight Zone); exchanging work completed for monetary compensation; don’t always have income on which you can depend.
Greatest challenges: Convincing people that my fee is worth it.
Approaches to meet the challenges: I usually compare my fees with what it costs to take my classes at Cuesta where you are always in a group of at least 8 people, and you don’t get to control the curriculum.
Approaches to meet the challenges: Agree to a solid contract, with payments spelled out and agreed to; get to know the Accounts Payable folks; get a Purchase Order number, and confirm the money is available; Bill regularly (include summary of services on each invoice).